PlayS­ta­tion 4 drives Sony shares to decade high

Irish Independent - Business Week - - Technology - Yuji Naka­mura and Yuki Fu­rukawa

SONY jumped to its high­est in more than a decade af­ter rais­ing its out­look for the cur­rent fis­cal year, thanks to ro­bust sales of the PlayS­ta­tion 4 con­sole and prof­its from its stake in re­cently listed Spo­tify.

Shares rose as much as 5.4pc in early Tokyo trad­ing, head­ing for their high­est close since 2008, af­ter the com­pany lifted its full-year net in­come and rev­enue fore­casts and also sharply beat oper­at­ing profit es­ti­mates for the June quar­ter.

“Sony se­cured a big beat on all fronts,” said Jef­feries Group an­a­lyst Atul Goyal. “The Games seg­ment had a spec­tac­u­lar quar­ter with ‘God of War’ suc­cess. We don’t think it can beat this quar­ter any­time soon. But, with more first party games, we ex­pect this will re­main a big driver.”

Net in­come will be 500bn yen (€3.85bn) on sales of 8.6trn yen through next March, the Tokyo-based com­pany said. The prior fore­cast called for 480bn yen and 8.3trn yen.

Sony cited higher-than-an­tic­i­pated game sales for the rev­enue re­vi­sion, while the re­cent mar­ket de­but of the mu­sic-stream­ing ser­vice added cash to the bot­tom line. The com­pany also re­ported a strong June quar­ter, with oper­at­ing profit of 195bn yen sharply ex­ceed­ing av­er­age pro­jec­tions for 145.4bn yen. That should come as a re­lief to in­vestors, who were caught flat-footed in April when new CEO Kenichiro Yoshida un­veiled a pes­simistic fore­cast.

PlayS­ta­tion rev­enue jumped 36pc and oper­at­ing profit nearly quin­tu­pled, rid­ing stronger-than-ex­pected sales of new games. More ti­tles were also sold dig­i­tally which gen­er­ates higher profit mar­gins. (Bloomberg)

Sony’s PlayS­ta­tion 4 has been a stand-out for the Tokyo firm with rev­enue up 36pc in the quar­ter

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